Legal & General Capital Guaranteed Bond 14

Legal & General has announced the launch of its latest Capital Guaranteed Bond. The three and a half year term, Capital Guaranteed Bond 14 (CGB14) is available for investment until Friday 6 November 2009.

Capital Guaranteed Bond 14 is a fixed term, three and a half year deposit investment. It guarantees the return of an investor's original capital at the end of the fixed term plus a return of 14.0 per cent gross (3.8 per cent AER) if the Final Index Level of the FTSE 100 Index is the same as or above the Initial Index Level.

Legal & General's Business Development Director, Savings, Jamie Vale said "This Capital Guaranteed Bond gives cautious investors the opportunity to have the potential for a relatively high return should the stock market perform well and yet protect their capital from stock market volatility. This is a very attractive combination. Investor's original capital is guaranteed and will be returned in full, even if the FTSE 100 Index falls, provided the investment is held for the full term."

The minimum investment is £500 and maximum individual cash ISA investment is £3,600 (2009/2010 tax year). The change to the ISA rules will mean that the cash ISA allowance will increase to £5,100 for investors born on or before 6 April 1960 (that is age 50 before 5 April 2010) for investments received on or after 6 October 2009.

There is no maximum for ISA transfers and deposit investments.

The funds invested are placed with the deposit taker Cater Allen at the start of the investment. This investment does not take account of dividends that would be available through holding shares in the FTSE 100 Index directly.